If you or your mortgage lender used some “creative” mortgage financing options in order to get your home, you may now be feeling the financial burden, big time. If you are one of the millions of homeowners in this situation, then you need to pay attention and read this helpful advice.

Here are some of the most commonly asked questions regarding a home mortgage refinance and mortgage rates when refinancing. As well as what it all means for you.

How is my monthly mortgage payment determined?
Your payment amount is determined by how much you loaned, how long you are paying it back in and what rate of interest you are paying. The same thing applies for a mortgage refinance. Some homeowners have an ARM (Adjusted rate mortgage) which means the interest rate will fluctuate throughout the year, making the monthly payment vary from month to month, sometimes by a lot.

Is refinancing my home mortgage now a good idea?
That depends on the interest rate which you will be able to refinance at. Generally, if you can refinance your home mortgage into a new one with an interest rate that is lower than your current rate by 2% or more you will see a good savings every month by refinancing. Keep in mind though, each individual situation is different. Say you only have 6 years remaining on your current mortgage, in this case a refinance may not be a financially wise decision. Be aware of your financial situation and future plans when considering a home mortgage refinance.

Should I have any information with me before refinancing?
There is some basic financial and property information you should have before talking to a mortgage lender about a refinance. Know the assessed value of your property, you should receive a yearly copy of the statement from your local tax assessor. It also helps to be aware of current trends in your neighborhoods housing market. This includes local recently sold home values as well as homes currently for sale and their asking price. This helps ensure the best refinancing deal possible.

Refinancing a home mortgage the correct way will save you money every month, and possibly for homeowners facing foreclosure, your home. Check the internet for potential mortgage lenders and make your start from there.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner